I am lost how to balance this sheet. I have it correct except the question mark at the end. Please help.

Balance Sheet Preparation From the following data, prepare a classified balance sheet for Simon Company at December
31, 2006.

Accounts Payable $62,500
Accounts Receivable 123,000
Buildings 418,500
Owner's Equity 1/1/06 210,000
Cash 179,750
Distributions to owners 2006 21,750
Supplies 3,750
Land 130,000
Mortgage payable 479,500
Net Income for 2006 124,750
Owner's Equity 12/31/06 ?

Assets = Liabilities + Owner's Equity

Owner's Equity for the Year is Calculated as: Beginning + Net Income – Any Distributions to owners = Closing Owner's Equity.

Based on those calculations, do you think you can take a stab at the answer?

I do not know where I am stubbling but your answer was as follows:

Assets = Liabilities + Owner's Equity

Owner's Equity for the Year is Calculated as:

Beginning + Net Income - any Distrivution to owners = Closing Owner's Equity

Sorry still cannot get it.

The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000

The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500

The following should be used in calculating Owner's Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?

Quote:

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Originally Posted by CaptainForest

The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000

The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500

The following should be used in calculating Owner’s Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?

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Okay,

I used the formula and concluded at $313,000 (Owner's Equity 12/31/06)

o/e - distributions + net income = o/e 12/31/06

Thank you. The other a + L are pretty straightforward.

Thank you.

313,000 is the correct answer.

Good job!

And you're welcome.

Got it finally less distribution to owners was missing out of the equation.

Thanks

Quote:

---

Originally Posted by CaptainForest

The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000

The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500

The following should be used in calculating Owner’s Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?

---

Very informative